The Government is engaged in ongoing negotiations with the operators of the two power ships currently providing 96 megawatts (MW) of electricity to Guyana’s national grid, amid concerns over the status of the vessels’ contract.
The floating power plants, located at Meadow Bank in the Demerara River and Everton in the Berbice River, have been supplying 60 MW and 36 MW of electricity respectively since 2024 under a two-year agreement between the Guyana Power and Light Inc. (GPL) and a joint venture involving Turkish firm Karpowership and Qatar-based UCC Energy International.
Reports have surfaced that the contract has expired and that discussions are underway on a renewal agreement.
Addressing the issue on Thursday, Minister of Public Utilities Deodat Indar said the Government is focused on securing favourable terms for Guyana.
“I would like to assure the public that the Government of Guyana is working in the best interests of the people of Guyana to get the best possible commercial rate for the renewal of the contract,” the minister said.
Recent reports suggested that the company had threatened to cease operations if a new agreement was not reached. However, Indar maintained that both vessels remain operational while negotiations continue.
“We continue to be in the negotiation process, while the power ship maintains an uninterrupted supply of electricity to the national grid… I want to reassure the population that no power outage is occurring due to a lack of power generation,” he stated.
The minister further explained that recent power interruptions experienced across the country were linked to grid maintenance works and disruptions caused by contractors, rather than any issues involving the power ships.
He noted that the public will be updated once negotiations between GPL and the operators are concluded.
The power ships were brought in as a temporary measure to help meet increasing electricity demand while Guyana awaits the commissioning of the Gas-to-Energy (GtE) Project at Wales, West Bank Demerara.
GPL Team Lead Kesh Nandlall had earlier disclosed that Guyana’s peak electricity demand has reached 236 MW and is projected to increase dramatically over the coming years.
“By 2030, we estimated it to be 1650 MW, or one gigawatt (GW), 650 MW of peak demand output that we’ll have to have generation in place [to meet]…that means a 600 per cent increase in our generating capacity from now to 2030,” Nandlall said during the Guyana Energy Conference earlier this year.
Current peak demand has doubled from 120 MW in 2020, driven by both a growing customer base and increased electricity consumption among existing consumers.
GPL currently has about 260 MW of firm capacity available on the Demerara-Berbice Interconnected System (DBIS), with that figure expected to rise to approximately 285 MW this year.
The Wales Gas-to-Energy Project is expected to add 300 MW of generating capacity and significantly reduce electricity costs when it comes on stream later this year. The Government has also announced plans for a second phase of the project, which is expected to deliver an additional 300 MW by 2030 as electricity demand continues to rise.
